PRESS RELEASE

PRESS RELEASE

MALVERN, Pa., Feb. 27 /PRNewswire-FirstCall/ -- Novavax, Inc.
(Nasdaq: NVAX) today announced that it has entered into a definitive agreement
for a $20 million registered direct offering of 4,597,701 shares of its common
stock to Kleiner Perkins Caufield & Byers and Prospect Venture Partners. The
shares of common stock, priced at $4.35 per share, were registered pursuant to
Novavax's shelf registration statement that was declared effective by the
Securities and Exchange Commission on January 6, 2006. The closing is subject
to satisfaction of customary closing conditions.

Kleiner Perkins Caufield & Byers, based in Menlo Park, California, has
agreed to acquire $12.5 million or 62.5% of this offering. Prospect Venture
Partners, based in Palo Alto, California, has agreed to acquire $7.5 million
or 37.5% of this offering. For Prospect Venture Partners this investment is
in addition to its $5.5 million previously accumulated equity ownership
position in Novavax acquired through open market purchases of common stock.

Both firms will recommend a representative to serve on the Novavax board
of directors within a few weeks which will be considered at the upcoming
annual meeting of stockholders of Novavax. Both firms have contractually
agreed not to sell any securities acquired in this offering for a minimum of
90 days.

Brook Byers, Managing Partner of Kleiner Perkins Caufield & Byers, said:
"Our investment in Novavax is aligned with our intent to support global
efforts to address the public health threat posed by the current H5N1 strain
or other strains of avian influenza virus. We believe in Novavax's management
team and in their virus-like particle technology platform to create effective
and flexible vaccines against avian flu strains and other pathogens, and the
Company's creative manufacturing approach to rapidly create worldwide supply
of such vaccine candidates."

Rahul Singhvi, President and Chief Executive Officer of Novavax said: "We
are pleased that Kleiner Perkins and Prospect Venture Partners have committed
such a significant investment in Novavax. The track record of these venture
firms is legendary, and their active participation in the Company will be
invaluable in supporting us in successfully executing our plans to create an
effective vaccine against pandemic influenza. We will work closely with both
firms to leverage their substantial expertise in healthcare and
biotechnology."

"I am eager to begin my association with Novavax and help realize the
potential of the Company's highly innovative and powerful vaccine technology,"
said Dr. James Tananbaum, Managing Partner of Prospect Venture Partners. "I
look forward to helping the company's senior management team and board
maximize Novavax's promising research."

Novavax plans to use the net proceeds from the offering for general
corporate purposes, including but not limited to i) clinical development of
virus like particles (VLP)-based avian and seasonal influenza vaccines,
including the development of appropriate adjuvants, and demonstration of
large-scale production capabilities, for such vaccines; ii) internal research
and development programs, such as preclinical and clinical testing and studies
of our product candidates and the development of new technologies; iii)
expansion of and investment in the Company's research and development
facilities, including compliance with cGMP (current General Manufacturing
Practices) and GLP (General Laboratory Practices) rules and regulations and
iv) other general corporate purposes. A copy of the final prospectus relating
to the offering may be obtained from Dennis Genge, Vice President and Chief
Financial Officer, Novavax, Inc., 508 Lapp Road, Malvern, PA 19355, when
available.

About Novavax, Inc.

Novavax is focused on creating differentiated, value-added pharmaceutical
and vaccine products and technologies. The company's technology platforms
include the virus-like particle (VLP) manufacturing technology utilizing the
baculovirus expression system in insect cells, as well as novel vaccine
adjuvants based on Novasomes and dendrimer technologies. The company is
developing vaccine against the H5N1 strain of avian influenza virus and the
human seasonal influenza virus using its VLP and Novasome technologies.
Novavax's drug delivery technologies include the micellar nanoparticle (MNP)
technology which is the basis for the development of its first FDA-approved
product, ESTRASORB. In addition to MNP, Novavax drug delivery technologies
include Novasomes(R) (paucillamellar non-phospholipid vesicles) and
Sterisomes(R) (subcutaneous depot injection). The company has several
products utilizing the MNP technology in various stages of development.

Prospect Venture Partners is a Palo Alto, California-based venture capital
firm with over $1 billion of capital under management. The firm is dedicated
to investing in outstanding biomedical technology and life science companies.
Prospect targets commercially attractive health care enterprises with
outstanding entrepreneurial management teams, proprietary products, and
innovative technology or services with potential for significant investment
returns. The firm invests in companies with a broad range of development and
financing requirements including: (a) incubating new companies, (b) investing
in first and second venture financing rounds, and (c) participating in later
stage private and public companies with proven business models requiring
expansion capital. For more information on Prospect Venture Partners, please
visit www.prospectventures.com.

Forward Looking Statements

Statements made in this press release that state Novavax's or management's
intentions, hopes, beliefs, expectations, or predictions of the future are
forward-looking statements. Forward-looking statements include but are not
limited to statements regarding usage of cash, product sales, future product
development and related clinical trials and future research and development,
including FDA approval. Novavax's actual results could differ materially from
those expressed in such forward-looking statements. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from those expressed
or implied by such forward-looking statements. Such factors include, among
other things, the following: general economic and business conditions; ability
to enter into future collaborations with industry partners, competition;
unexpected changes in technologies and technological advances; ability to
obtain rights to technology; ability to obtain and enforce patents; ability to
commercialize and manufacture products; ability to establish and maintain
commercial-scale manufacturing capabilities; results of clinical studies;
progress of research and development activities; business abilities and
judgment of personnel; availability of qualified personnel; changes in, or
failure to comply with, governmental regulations; the ability to obtain
adequate financing in the future through product licensing, co-promotional
arrangements, public or private equity financing or otherwise; and other
factors referenced herein. Additional information is contained in Novavax's
annual report on Form 10K for the year ended December 31, 2004 and quarterly
reports on Form 10Q for the quarters ended March 31, 2005 and June 30, 2005
and September 30, 2005 incorporated herein by reference. Statements made
herein should be read in conjunction with Novavax's annual and quarterly
reports filed with the SEC. Copies of these filings may be obtained by
contacting Novavax at 508 Lapp Road, Malvern, PA 19355 Tel 484-913-1200 or the
SEC at www.sec.gov.